Digital marketing vs Conventional Marketing

Digital marketing vs. conventional marketing:

Preference of students who are residing in the Dhaka City

Over the year, the field of marketing and advertising has been changed a lot. In fact, it changes every day. In the last few year digital marketing has been improved dramatically. Most of the world’s top organizations are now focusing more on digital marketing. Currently, there are even questions rising that digital marketing is obsoleting the conventional marketing. This report will be mainly focusing these two types of marketing from the aspect of the students residing Dhaka city. A research has been conducted with a number of participants to find out what they are thinking about digital vs. conventional marketing.

Introduction

In recent years, advertising industry in Bangladesh is evolving a lot. Among the top advertising agencies in Bangladesh, Ogilvy & Mather successfully placed its name with “first class business in a first class way” tag. Ogilvy is very prominent for its creative works and now it is becoming impeccable as a digital advertising agency. The increase of digital advertising demands in Bangladesh made Ogilvy focusing more on the digital unit. In this report, the knowledge and resources from Ogilvy is used to understand the Digital marketing dominance over conventional marketing among the students.

Scope

Digital and Conventional marketing will be discussed from the perspective of the students who are residing in the Dhaka only.

The Organization

Ogilvy & Mather was started by David Ogilvy in 1948. At that time he was new in this sector. He started without any clients and only two staffs. At this moment his company is one of the eight major advertising networks round the world. Ogilvy & Mather runs in not less than 450 offices in 169 cities. Ogilvy’s history is the evolution of one man’s trust, abilities, and work ethic interpreted into a business culture, a defining business approach, a future. David Ogilvy intended to have a different kind of company from the beginning. He knew that if he was going to be successful as running business under an old British firm. For him, the first two important modules of that brand would be the quality and diversity of the people, and the quality and class of the operation. “Only first class business and that in a first class way.” The third component was his belief in brands. “Every advertisement is part of the long-term investment in the personality of the brand” David worked relentlessly to encourage the belief that agency’s job is to make advertising that sells, and the advertising that sells best is advertising that builds brands. Ogilvy practice what David Ogilvy wanted to. Over last sixty years Ogilvy & Mather worked to build the strong brands like American Express, Sears, Ford, Shell, Barbie, Pond’s, Dove, and Maxwell House, IBM and Kodak.

David firmly believed that the function of advertising is to sell, and that successful advertising for any product is based on information about its consumer. His copy was written to sell products, and it followed the basic rules of advertising: research and position the product, develop a brand image, and having a big idea.

Ogilvy & Mather’s holding company WPP is the world’s largest communications services group, employing 179,000 people working in 3,000 offices in 111 countries. It’s main management office in London and its executive office in Dublin, Ireland. WPP makes the backbone of Ogilvy very strong to enter into a newer markets and continuously expanding its network.

Ogilvy & Mather registered its business in Bangladesh in January 2006 as Ogilvy & Mather communications Pvt. Ltd. and commences formal operation in October 2008. Before that it was operating as Marka – a local agency.

Services Provided by O&M

O&M is operating in the advertising industry of Bangladesh since 2008. The services provided by this organization are:

  • Advertising
  • Promotional Campaign
  • Creating communication strategy
  • Events
  • Media Buying
  • PR
  • Digital advertising / Social Media Advertising
  • Logo development
  • Production

Clients

O&M Worldwide

Internationally Ogilvy & Mather Worldwide manages a various portfolio of clients across countless industries. Ogilvy’s global portfolio of clients include BBC, BP, Coca-Cola Co., GlaxoSmithKline, IBM, MasterCard International, Merck & Co. Merrill Lynch, Novartis, Pfizer, Unilever, Xerox, Argos, Ariba (UK) Ltd., Deloitte & Touche, Dubai World Cup, Intelsat, Kimberly-Clark Corp., Shell, Lenovo, Nestle, and Sun. Ogilvy PR Worldwide division’s B/W/R is dealing with media relations for celebrities such as Ben Affleck, Brat Pitt, Michael J. Fox, and Reese Witherspoon. Finally, several governmental bodies stand amongst Ogilvy’s clients.

O&M Asia Pacific

In South Asia, Ogilvy & Mather Worldwide is the largest communications solutions provider with industry leading clients such as Hutchison Essar, Discovery Channel, Maxis Malaysia, Milo, Kodak, Mahindra, Motorola, Perfetti Van Melle, Sprite, Nestle, Cadbury India, Fevicol, AsianPaints, LG India, Titan and Bajaj Autos etc.

O&M Bangladesh

O&M Bangladesh has many reputed local clients such as British American Tobacco Bangladesh, Unilever Corp., Symphony, CEAT, Polar, Perfetti, KFC, Pizza Hut, Dove, Ponds, Dan Cake, Prime Bank, BRAC Bank, Huawei, Helio, Pledge Harbor international School, Aarong, Teletalk Bangladesh Ltd, Kollol Group, Homebound, Shah Cement, Partex Holdings, Concord Group, Shanta Properties ltd. etc. as well association with global clients as Unilever Bangladesh, HSBC, Foods, Motorola etc.

Digital Marketing

Digital marketing is the advertising of products or brands via electronic media. Digital marketing differs from conventional marketing because of the use of channels and methods that activates an business to study marketing campaigns and understand what is working and what isn’t generally in real time. Businesses can take quick action after consumers’ feedback or requirements. More importantly, communications become two ways – effectively. That makes the customers happier.

Digital marketers screen things like what is being viewed, how long and how many times, what content works and doesn’t work, etc. They open their eye 24/7 to see what happening and what is upcoming. In this case, internet is most closely associated with digital marketing, others include text messaging, instant messaging, mobile apps, electronic billboards, digital television and radio channels, etc.

The term ‘digital marketing’ was first used in the 1990s. In the 2010s, digital marketing became more upgraded as an effective way to create a better relationship with the consumer. The prompt growth of digital media has created new chances and places for marketing and advertising.

An estimation of 4.5 trillion online ads served annually with digital media. Money spent on digital media increased 48% in 2010. Digital marketing is often denoted as ‘online marketing’, ‘internet marketing’ or ‘web marketing’. The term ‘digital marketing’ become popular in certain countries. In the USA ‘online marketing’ is still widespread, in Italy is known as ‘web marketing’ but in the UK and rest of the world, ‘digital marketing’ has become the most common term.

Conventional/Traditional Marketing

Traditional marketing is what we regularly see marketers are doing around us. It refers to any type of promotion, advertising or campaign that has been implementing by companies for years which has a recognized success percentage. Methods of traditional marketing can include print advertisements, such as press, newsletters, billboards, flyers, danglers and other POSM materials.

Another form of traditional marketing include television spots or commercials and radio spots or endorsements.

Print marketing is the eldest method of traditional marketing. Advertising in paper form has been in use from the ancient times, when Egyptians created sales messages and wall posters on papyrus. Currently print marketing refers to advertising space in newspapers, magazines, newsletters, and other printed tools.

Digital Marketing vs. Conventional/Traditional Marketing

There is a debate whether digital marketing is outstanding traditional marketing or not. Most of the people believes that digital marketing has taken over and traditional marking hardly exists. Over the last year traditional marketing had fallen nearly 160% and at the same time digital marketing improved 14%.

As traditional marketing is evolved for so long people are familiar to it. Searching ads in magazines and newspapers, or looking at roadside billboards are still common activities and people do them all the time. Most of the time traditional marketing is reaching only local audiences. The main problem of traditional marketing is the results of the communication cannot be measured precisely or at some points it cannot be measured at all. It even costly than digital marketing. In another note, mostly traditional marketing is not interactive. The communication is done only in one way. So there is no quick way to know what people are thinking or want to say about their brand/products or communications.

Talking about digital marketing, businesses now know whom they want to target and what they offer to them. So, here right people gets to know about what company has to say. If the targeted person wants to know any further information about the products or services from the business, they can let him/her know very easily with a very low communication cost. Thus people become more interested in products or services and company gets more customer. The bonding become deep as customer can constantly talk with the brand. That creates loyal customers. In terms of money, digital marketing is extremely cheaper than traditional marketing and the effectiveness is extraordinary.

The win of digital marketing over traditional marketing can be easily pointed out. However, People, especially in the third world countries are still accustomed with traditional marketing. So, it’s hard for any business to grow by shaking the hand only with the digital marketing. The world is still not prepared to ignore traditional marketing.

Analysis on the preference: Digital vs. Conventional

The preference among minds varies. All people might not prefer the things most people prefer. In this report it will be shown what type of communication is preferred by the students residing in Dhaka city. It has been tried to narrow down the focus of the report. Total 10 sets of questions answered by 43 audience will describe the preference of students residing in Dhaka.

i. Getting new product launching info via digital media than a conventional media is more informative.

35.71% of the students strongly agree that new product launching info via digital media is more informative. Another 52.38% also agrees with the same point. Students with other views are very low in number. This figure shows students feel very convenient when new brands/products communicate through online. This happens because students might not look into other type of communications such as billboards or printed press.

Most of the time they are busy with their studies, hangouts or in a digital device like smartphones, pc, tab etc. When they want to get any news, they try to know it online. That moment the advertiser can get their attention.

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Figure: Getting new product launching info via digital media than a conventional media is more informative.

ii. Digital Media is an easy & effective way to give feedback to the product/services.

More than 90% students in Dhaka city accept that giving feedback on product or services via online medium is easy and effective which is never possible in traditional medium.

Social media is playing a vital role for this. In Bangladesh, many of the Facebook pages like Symphony Mobile, which is managed by Ogilvy & Mather has a very high response rate. Symphony’s Facebook page is managed such a way so that everyone can get his/her question answered by the same day. Facebook has launched a new system where pages can directly reply through a message when it demands not be public. In conventional way, they needed to call their customer center which is not open 24/7 and that incurs cost while calling. Sometimes the long queue of call makes people annoying.

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Figure: Digital Media is an easy & effective way to give feedback to the product/services.

iii. Technological products (i.e. smart phones, laptops) should maintain more digital advertisements than conventional/traditional advertisements.

95% of the students residing in Dhaka city agree or strongly agree that technological products should maintain more adverts in digital media. Tech savvy people always try to search the best product in the market with a comparative price.

So, they need to do a lot of researches. However, doing a research by going to the market is far mainstream. Now, it is very easy to know information of the latest Strongly Agree Agree Neutral products online. Rest of the 5% uses technology for their daily needs. Hence, they are not interested to compare.

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Figure: Technological products (i.e. smart phones, laptops) should maintain more digital advertisements than conventional/traditional advertisements.

iv. Having organized digital social media platform (Facebook, Twitter) raises the position of the product/company in the market.

In the era of online or web marketing, having an organized Facebook page is mandatory for the businesses. Surprisingly 40.47% of the students strongly agree and another 40.47% students agree with this. 16.66% did not have any comment on it. In a social media a brand can communicate with the customers of its. This helps a lot to build further relationship the brand. That also makes repeat customers.

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Figure: Having organized digital social media platform (Facebook, Twitter) raises the position of the product/company in the market.

v. You click on the online ads to read more when you feel interest on it.

People nowadays have become very much technologically involved and a day without the blessing of technology is almost beyond thinking. For general students, it has been seen that they spent their maximum time online in searching or surfing through the internet not only for the educational purpose but also for nourishing their brain store as well. Therefore, during survey, when they were asked about their interest on the online ads, it has been found that 33.33% of the students strongly agree and 40.47% agree with the fact. Whereas, 14.28% students has shown to be neutral and 9.52% of the students disagreed with the fact along with the result of 2.38% strongly disagreed students. Again, from the above figures it is now clear that students also show interest on ads. Online Advertisement industry is very important because the content creators mostly earn through the advertisements. Students are also contributors for that.

vi. You prefer to order online than go to the marketplace to purchase the products which are already available online.

Due to the increased technological involvement, people are nowadays become more flexible on online shopping rather than going to shopping malls. But in Dhaka (Bangladesh), it has been seen that students are still more likely to go to malls for shopping. During the survey, when students were asked to give their opinion on this fact, 11.90% students strongly agreed and 23.81% agreed that they prefer online marketing rather than going to the market place. On the other hand, 23.81% of the students were neutral about this, but 35.71% of the students were disagree with online shopping and 4.76% strongly disagreed and chose to go in the traditional market place while purchasing a product. This is happening because the quality of service of the online marketplace in Dhaka (or Bangladesh) is not up to the mark. Here, it is seen often seen that the online display of the products and actual products are far different. So, people trust it less.

vii. You like to use mobile phone for shopping from online markets.

 Mobile phone is one of the most common technological devices that any individuals can easily afford. The device is not only used for the communication purpose but also have several multipurpose activity, such as- listening music, taking images, listening radio, chatting, playing games, calculator, data transfer etc. By using internet in the mobile phone, the online shopping has become more easier for people even though some percentage always prefer the conventional marketing system, and found it more easier than online marketing. Due to the technological advance in the mobile phone devices and introduction of high speed network connection people can nowadays easily choose and buy products from the vast options. During the survey, when students were asked about their usage of mobile phones for shopping from online markets, it has been seen that 11.90% strongly agreed and 28.57% agreed on using mobile phones for shopping.

Whereas 21.43% were neutral with this fact, 28.57% disagreed with this and chose to go with other devices for online shopping and 9.52% strongly disagreed to prefer mobile phone for online shopping.

viii. Digital Market has far more freedom of choice than a conventional market.

Digital market involves continuous updating of the products and it also provides the consumer a vast option to choice from. Since digital market means the involvement of internet therefore people can easily get to know about the latest design, fashion, latest trend of clothing, several new technological devices etc. therefore sitting at home any individual can gather all the information about a desired product and can also get the advantages of home delivery. Therefore, one does not have to face the hazards of limited choice, price bargaining, crowd, noise that comes when buying products from conventional market. During the survey when students were asked to give their choice, 26.19% of the students strongly agreed and 23.80% agreed on the fact that digital market provides more freedom than conventional market. Whereas 35.71% were neutral about this and 11.90% of the students has shown to be disagreed to go with digital market while comparing the freedom of both the market. It shows, they belief in the more choices of digital market.

ix. You search newspaper/TV/radio/billboards to know about desired new products/services in the market.

Nowadays it’s been very tough to find something specific in newspaper/TV/radio or billboards. Because someone needs to check all the sources of a specific medium to find a desired info. It’d take long time to do which demotivates students to search. The research findings show the same thing. More than 65% of the students residing in Dhaka city do not search in the conventional media for new products or services in the market. That means they search in the digital media for the new products/services in the market which take less time from them.

 

Findings

Students are always free to think and talk. They always try to adopt new changes that come in the society. Technology is one of them. They also took the best of it. Through the 10 questionnaire answers it is very clear that students who resides in Dhaka city are very much favoring digital marketing than conventional marketing. To sum up:

  1. Students are aware of online Ads and they have interest on it
  2. They prefer to know new product info over internet
  3. Online purchase is less trustworthy

Recommendation

From the three findings, it is found that students are aware of online ads and they have interest on it. However, in some cases a number of ads are inappropriate for the students. Advertisers need to eliminate the number of inappropriate ads. On the other hand, most of the students residing in the Dhaka city do not trust online purchase/delivery. This happens because sellers don’t provide goods as they displayed in the website. This needs to be fixed as soon as possible.

Conclusion

Students always play a great role to adopt new things in the society. Digital marketing is one of these. Students are adopting it so fast, hence, conventional marketing is going to say good bye very soon. In coming years there will be no competition between conventional marketing and digital marketing rather only digital will govern the market. In the survey, most of the students showed their interest in the digital marketing and preferred as a communication medium. Some of the students have still doubt on the service of digital marketer. It will be elucidated in near future.